Hong Kong-based global reinsurer Peak Re has renewed and upsized Lion Rock Re, the first Asian sidecar.
At $77 million, Lion Rock Re II saw investors exceed the $75 million raised by the sidecar’s first iteration in 2018.
To effect the arrangement, Lion Rock Re II entered into an exclusive quota share agreement with Peak Re, reinsuring part of the firm’s global property reinsurance portfolio
In an accompanying statement issued by Peak Re, this deal was described as a further testament to investors’ view that Lion Rock Re provides access to a unique and high quality portfolio of reinsurance business.
“Following on from the steps we took in bringing Lion Rock Re to the industry, we are very pleased to be able to announce that investors have chosen to support us once again,” said Franz Josef Hahn, Chief Executive Officer of Peak Re.
“We said that last year was a milestone for the reinsurance market in Hong Kong, but the confidence shown in Lion Rock Re II really shows that Hong Kong can become a hub for ILS investors.”
Lawrence Cheng, Managing Director, Underwriting, added, “Lion Rock Re II will allow us to continue our drive towards modernising reinsurance and bringing more communities under the umbrella of protection that insurance and reinsurance provides,”
“Creating a sidecar has always been part of Peak Re’s long term strategy, and the trust shown by investors will allow us to continue to develop our relationships with ILS managers and investors as we go forward.
“The judicious allocation of risk to Lion Rock Re through 2019 certainly helped us to deliver returns for investors and we look forward to following this through in 2020.”